Belgrade prosecutors agreed to lift arrest and search warrants for Mirjana Marcovic during her husband's funeral. Former Yugoslav leader Milosevic, 64, died Saturday in prison in The Hague.
Deputy Prosecutor Mirjana Ilic said there were no legal grounds to close the criminal case against Marcovic. She said a pardon could be granted by Serbian President Boris Tadic, although Tadic has so far rejected this option.
Marcovic, who lives in Russia, is accused of illegal intermediation in the distribution of state-owned apartments. A warrant for her arrest was issued April 17, 2003, lifted May 31, 2005 and re-issued September 15, 2005, when she failed to appear at court.
Milosevic, who was on trial for war crimes and genocide at the International Tribunal for the Former Yugoslavia, was found dead in his cell in the tribunal's prison March 11. Preliminary reports suggest he died of a heart attack.